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A disclosure form signed by an arbitrator indicating that the arbitrator will entertain employment opportunities with law firms involved in the current dispute is sufficient disclosure to preclude a finding of arbitrator bias, a state court in California held.
In Markman v. O'Hare, No. G036546, 2007 WL 915108 (Cal. App. Mar. 28, 2007), Markman and O'Hare became entangled in a dispute over a real estate sale. The parties submitted their dispute to arbitration, and the arbitrator issued an award granting Markman only a portion of the relief that she requested.
Markman then moved to vacate the award, alleging that the arbitrator failed to make required disclosures because, after this arbitration began, the arbitrator was hired to arbitrate another dispute where one of the parties was represented by the same firm representing O'Hare.
However, the Court rejected the argument and refused to vacate the award. Prior to arbitrating the dispute between Markman and O'Hare, the arbitrator signed a disclosure form, indicating that "he would entertain offers of employment as an arbitrator or mediator from a lawyer or law firm involved in the current matter."
This agreement, the Court held, was sufficient disclosure. Additionally, the Court pointed out that, even though it was not required, the arbitrator did disclosed the subsequent employment that he received to the parties in this dispute, and Markman's counsel indicated at that point that he did not question the arbitrator's neutrality or impartiality.
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